elcome to another crypto market outlook for the 23rd of June!
In this edition, we'll delve into major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting critical levels and potential trade setups.
From Bitcoin maintaining an overall bearish outlook to Ethereum hovering within a narrow range and the Fear & Greed Index signaling ‘Neutral’ for the first time in months, this article covers it all.
Are you ready?
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.
After rejecting the $72,000 resistance level, BTC has been dipping. However, this week has been relatively stable, with BTC down by only -0.03% and ETH by -2.79%.
This bearish movement in BTC was reflected across the entire crypto market, with almost all altcoins ending the week on a bearish note.
After signaling "Greed" for almost 2-3 months, the Fear & Greed Index is cooling down, signaling a mixture of "Neutral" and "Greed" this past week, with the meter dropping significantly from 74 to 55.
US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
The US500 is still hovering around a strong rejection point, which is the intersection of the upper bound of the wedge pattern and the $5,500 round number.
As long as the $5,500 resistance level holds, we anticipate the bears to kick in soon.
In the 4-hour timeframe, the bulls have maintained an overall bullish outlook, trading within the rising channel marked in red.
For the bears to take over and start the correction phase towards the lower blue trendline, a break below the last major low marked in red at $5,435 is needed.
We consistently monitor the DXY - USD Index as part of our routine analysis. This is crucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial market.
As anticipated, DXY has rejected the lower bound of the blue channel and the $104 mark.
As long as the bulls hold, a continuation towards the $106.5 - $107.5 resistance zone is needed.
In the 4-hour timeframe, DXY rejected the $105.2 support level and is currently trading higher within the rising channel marked in red.
As long as the rising channel holds, a bigger impulse towards the upper bound of the channel is anticipated.
Gold is still hovering within a broad range in the shape of a flat rising channel marked in red.
Currently, Gold is retesting the lower bound of the channel, so a continuation towards the upper bound of the channel is anticipated.
In the 4-hour timeframe, Gold has also been bullish from a short-term perspective, trading within the rising channel marked in blue.
As long as the lower blue and red trendlines hold, a bullish continuation towards the supply zone marked in blue is anticipated.
USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it serves as a critical indicator of traders' sentiment. USDT.D provides valuable insights into whether traders are optimistic, signaling increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.
After breaking above the 4.8% structure, USDT.D has been overall bullish.
As long as the 4.8% support level holds, a continuation towards the 5.25% resistance level is anticipated.
In the 4-hour timeframe, USDT.D has been overall bullish, trading within the rising channel marked in red.
The bulls will maintain control unless the lower red trendline and the 4.75% support level are broken downward.
After rejecting the $72,000 resistance level, BTC has been overall bearish, trading within the falling channel marked in blue.
Currently, BTC is approaching a strong support zone between $60,000 and $62,000, so we expect the bulls to kick in soon.
In the 4-hour timeframe, BTC has been bearish, trading within the falling channel marked in blue.
This week, the bears kicked in especially after rejecting the $66,500 resistance level.
For the bulls to take over and shift the momentum, a break above the upper blue trendline is needed.
Meanwhile, a movement towards the lower bound of the blue channel and the $62,000 support level is expected.
ETH has been uneventful this week as it is still hovering within a narrow range between $3,435 and $3,600.
If the $3,435 support level is broken downward, a bearish continuation towards the $3,180 demand zone would be anticipated.
In the 4-hour timeframe, ETH has been hovering within a range in the shape of an inverse head and shoulders.
For the bulls to take over and start the next upward movement leading to $4,000, a break above the neckline marked in red at $3,655 is needed.
Quotes / Advices
Dollar-cost averaging (DCA) during an accumulation phase involves investing a fixed amount of money at regular intervals, regardless of the asset's price.
This strategy mitigates market volatility by spreading out purchases over time, reducing the impact of short-term price fluctuations.
By consistently buying in, investors accumulate assets at an average cost, potentially maximizing returns when prices rise, and minimizing risk compared to lump-sum investments.
Closing Remarks
In summary, the cryptocurrency market had a mixed week. BTC declined by only -0.03%, and ETH dropped by -2.79%, reflecting a broader bearish sentiment across altcoins.
Despite this, the Fear & Greed Index has shifted from "Greed" to a mixture of "Neutral" and "Greed," indicating a cooling of trader optimism.
The US500 maintains a cautious outlook as it nears a strong rejection point at $5,500. Bearish momentum is expected if this resistance level holds.
The DXY Index shows bullish potential, aiming for the $106.5-$107.5 resistance zone. Short-term support is expected to hold, with the trend remaining upward.
Gold is testing its support levels, currently around the lower bound of its channel. Bullish movements are anticipated if the lower trendlines hold.
The USDT.D analysis shows a critical support zone at 4.8%. A continuation towards the 5.25% resistance level is expected, which could impact the broader crypto market.
BTC and ETH remain bearish, trading within falling channels. BTC needs to break above $66,500 for a bullish reversal, while ETH requires a break above $3,655 to shift momentum. Until then, both are expected to test their respective support levels.
